M A Traders And 7 Others vs. State Of Up And Another
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Neutral Citation No. - 2025:AHC:108691-DB Court No. - 3 Case :- WRIT TAX No. - 3002 of 2025 Petitioner :- M. A. Traders And 7 Others Respondent :- State of U.P. and Another Counsel for Petitioner :- Suyash Agarwal Counsel for Respondent :- C.S.C. Hon'ble Shekhar B. Saraf,J. Hon'ble Praveen Kumar Giri,J.
Heard learned counsel appearing on behalf of the parties.
This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioners have made the following prayers:- "A. Issue a Writ, Order or Direction in the nature of Certiorari quashing order dated 30.05.2025 passed by Respondent No.2 Assistant Commissioner Commercial Tax Mobile Unit - 11 Kanpur u/s 129(3) of UP GST Act 2017. (Annexure No.1)." B. Issue a Writ, Order or Direction in the nature of Certiorari quashing rectification order dated 05.06.2025 passed u/s 161 of the act (Annexure No.2). C. Issue writ order or directing the nature of mandamus directing Assistant Commissioner Commercial Tax Mobile Unit -11 Kanpur to release goods and vehicle seized u/s 129(1)(a) of the act;"
Upon perusal of the impugned order, we find that penalty has been imposed under Section 129(1)(b) of the CGST Act treating the petitioners as not being the owners of the goods.
Learned counsel appearing on behalf of the petitioners relies upon a judgment of this Court in M/s Halder Enterprises v. State of U.P. and others reported in 2024 (2) ADJ 660 (DB), wherein this Court has examined this issue and also examined the relevant circular that has been issued by the department with regard to penalty to be imposed under Section 129(1)(a) and 129(1)(b) of the CGST Act.
Following the ratio laid down in M/s Halder Enterprises (supra), we find that since the invoice was presented in the present case, the authority concerned has erred in law by imposing penalty under Section 129(1)(b) of the CGST Act.
Accordingly, the impugned order dated May 30, 2025 is quashed and set aside with a direction upon the authority concerned to grant an opportunity of hearing to the petitioners and thereafter pass a reasoned order in accordance with law, keeping in mind the principle laid down in M/s Halder Enterprises (supra), within a period of eight weeks from date.
The writ petition is disposed of. Order Date :- 9.7.2025 DKS (Praveen Kumar Giri,J.) (Shekhar B. Saraf, J.) DEEPAK KUMAR SRIVASTWA High Court of Judicature at Allahabad
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.